New York Markets After Hours

Hong Kong leads broad Asian stock losses

Mainland Chinese shares end higher amid policy easing hopes

By

VirginiaHarrison

V.Phani Kumar

HONG KONG (MarketWatch) — Most Asian markets fell Tuesday, with early gains for Japanese stocks slipping away after the Bank of Japan decided against further policy loosening, while Hong Kong and Australian shares dropped in their first response to weak global economic data.

“Markets are taking off the risk that has been put on for the last few months,” said Tom Kaan, director of equity sales at Louis Capital Markets in Hong Kong. “There is too much concern over a hard-landing for China.”

Hong Kong’s Hang Seng Index (HSI) lost 1.2% to 20,356.24 and Australia’s S&P/ASX 200 (XJO) fell 0.6% to 4,292.30, as traders returning after a four-day weekend responded to a disappointing U.S. jobs report and to Chinese trade and inflation data.

Financials lead U.S. stocks down on jobs data

(3:37)

Weak jobs data and European debt concerns rocked U.S. stocks on Monday.

In Tokyo, the Nikkei Stock Average (100000018), up 1.1% at one point, reversed course to finish the day 0.1% down at 9,538.02, as the yen appreciated after the Bank of Japan left its policy interest rate and the size of its asset purchases unchanged. The drop marked a sixth straight day of decline for Japanese shares. Read more on the BoJ statement.

“Going into the [BoJ] meeting, there was at least a partial expectation of a further ratcheting up of the asset purchase program and [the yen] is slightly firmer as a result,” said Adam Cole, a foreign exchange strategist at Royal Bank of Canada.

The losses followed weak cues from Wall Street Monday, when U.S. stocks hit their worst levels in a month, as investors returning from a long weekend got their first chance to react to Friday’s disappointing jobs report. Read more on the U.S. session.

Data released Tuesday by the General Administration of Customs showed the country unexpectedly swung to a trade surplus of $5.35 billion in March, from a deficit a month earlier. Exports growth beat economists’ estimates, while imports increased at a slower pace. Read more on China's trade surplus.

“Low import figures were partly driven by payback from high growth in previous months. But, the underlying message is that domestic demand is still slowing. Today’s trade numbers reinforce the need for easing efforts to be stepped up in the coming months,” economists at HSBC wrote to clients in a report.

Shares in Woodside Petroleum Ltd. (WPL)
WOPEY, -0.08%
fell 1.4% in Sydney after the energy firm said it would delay a final investment decision for a proposed 40 billion Australian dollar ($41.2 billion) liquefied natural-gas hub by at least six months.

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